APPLICATION CRITERIA

• Applications will be considered based on the following factors:
   
• Application forms must be completed in full;
• Applicants must demonstrate financial capacity to operate a cannabis store;
• Applicants must identify the type of proposed location they are applying for:
  • Existing – secured and ready to renovate or in a ready state;
  • Identified – location identified but not yet secured (no lease or purchase in place);
  • Searching – unidentified location;
• Applicants must have municipal zoning approval for their chosen location; and
• Applicants applying for an Age-Restricted Licence must not exceed the 15% market cap for ownership and control of Manitoba cannabis retail stores. Ownership and control are determined based on the factors set out below:

The Province of Manitoba has imposed a market cap in respect to the operation of cannabis retail stores within the province. No individual or organization, or associated individuals or organizations, may maintain direct or indirect ownership or control of more than 15% of the cannabis retail stores operating in Manitoba. Ownership or control by an individual or organization, or associated individuals or organizations, includes but is not limited to: 

1. parent, subsidiary, or affiliated corporations of the applicant;
2. shareholders who directly or indirectly hold 10% or more of the outstanding shares, or a class of shares, in a corporation that is the applicant, or a parent, subsidiary, or affiliated corporation of the applicant;
3. directors or officers of the corporation that is the applicant, or the directors or officers of a parent, subsidiary, or affiliated corporation of the applicant;
4. partners where the partnership is the applicant or where the partnership is a shareholder or otherwise has a financial interest in the applicant;
5. any person who has entered into an association or joint venture with the applicant;
6. a person who will be entitled to any profits from the activities of the applicant or who will be liable for any obligations incurred in respect to the activities of the applicant;
7. a creditor including any person who loans or advances or causes to be loaned or advanced money or anything of value, with or without security, to the applicant;
8. any other person that effectively controls the business of the applicant; and
9. a spouse, common-law partner, or resident relative of a person in (a) through (h).

For the purposes of the above, a “person” means an individual or other legal entity such as a corporation, as may be applicable. A “resident relative” means a child, grandchild, brother, sister, parent or grandparent of the person or the spouse/common law partner that resides with them.

When considering whether an individual or organization, or associated individuals or organizations, maintain direct or indirect ownership or control of more than 15% of cannabis retail stores in Manitoba, consideration of facts that suggest an arrangement is not bona fide or at arm’s length will factor into a determination that a person is exercising ownership or control.


When reviewing retailer ownership and control, MBLL will consider a number of factors, including but not limited to, the following: 

• the legal name of the retailer;
• the retailer’s business name;
• the principals of the retailer;
• the legal and beneficial owners of the retailer;
• the directors of the retailer; and
• the shareholders of the retailer. 

Retailers, including those with ownership or control of retailers, are restricted from owning or controlling 15% or more of the issued Age-Restricted Licences in Manitoba. If you are a current retailer with one or more Age-Restricted Licences, your current number of Licences will be factored into this calculation. For the purposes of this criteria:

• 15% of the Age-Restricted Licences in Manitoba is defined as the current number of LGCA-issued Age-Restricted Licences multiplied by 0.15 and rounded up or down to the nearest whole number; and
• any stake in ownership of a location of 10% or more constitutes ownership. 
   

For example, if the current number of Age-Restricted Licences in Manitoba is 100, then the maximum number that each retailer could possess would be 15. This is calculated as 100 x 0.15 = 15. 
 

If an existing retailer wishes to acquire one or more additional Licences that would result in them exceeding the 15% limit, MBLL will require the retailer to identify the locations they wish to retain. The remaining locations that exceed the limit must either be closed or sold, and their Licences cancelled, before MBLL will enter into a Retailer Agreement(s) for the new location(s). 
 

As the number of issued Age-Restricted Licences fluctuates due to store closures and openings, the number of Licences that comprise 15% of the total also fluctuates.

If a store closure results in a retailer holding more than 15% of the issued Age-Restricted Licences in Manitoba, that retailer will not be required to close its store(s) but it will be unable to open or acquire any new Licences.

 In the event an Age-Restricted Licenced store closes (and their Licence cancelled) during the application process with an applicant, MBLL will handle as follows:

• If MBLL has emailed the applicant in response to their application advising the applicant that their application is being worked on and within that email confirmed that the applicant qualifies for a location (i.e. they meet the 15% ownership criteria) MBLL will continue working with that applicant to open their location.
• If MBLL has not emailed the applicant to advise they qualify for a location and their application has been received and is being worked on, the application will be paused until the number of Age-Restricted Licenced stores increases. MBLL will communicate with the applicant to let them know their application will be paused until further notice.